Not-So-Private Banking

Normally private banks are the soul of discretion. But sometimes the wider world forces open a window.

UBS now faces IRS demands for the names of Americans who may have been tax-sheltering via Swiss accounts.

Northern Trust finds itself in the spotlight because of a prominent client, Barack Obama. From time to time, the Washington Post reports, the Obamas have had as much as $3 million in investment accounts at Northern. What caught the Post's eye was the "super super jumbo" mortgage Obama obtained to buy "a $1.65 million restored Georgian mansion in an upscale Chicago neighborhood." Was the rate preferential? Why no points?

An Obama spokesperson says Northern adjusted the loan terms to match a competitor's offer.